In first 8 minutes he reinvented my experience of leaving academia

As a speculator, all of this leaves me contemplating whether or not any of these guys ever really understood what was going on back then, and to some extent, is still going on. I'm sure many do, but a lot of these academics seem to think the markets were not sophisticated enough to comprehend them. When the truth is, they were not sophisticated enough to comprehend the markets.

This is great. I'm learning how run models on the cloud and needed some inspiration. I had always assumed that Wall Street had it all figured out and hadn't bothered to research it.

Fantastic presentation. My finance prof would say "Extraordinary claims requires extraordinary evidence".

Newton's equation of gravity is an idealized model. doesn't mean it's useless. now if a rocket engineer at NASA started using that equation inappropriately without correction to build rockets and complains that it doesn't work and "the world is not ideal", I would say that is the NASA engineers fault not Newton's. the idealized equations are useful for understanding some underlying concept, but doesn't mean they perfectly reflect the world and should be used in a plug-and-play manner.

Still trying to know quant involvement to African scenery

Great speech! Can't believe this has only 1.5k+ views

Very true, quant trading is very overrated

honestly the system needs changes at almost every level, the market is mainly designed to drain money from schmucks using death by a million charges while we move money amongst ourselves.

his analogy with the case of beer is only applicable to equities, not foreign currency or crypto

20:57 How can hedgefund managers "game" circuit breakers?

UKposts algo gone wierd on this video..how come so less views and likes??

He is smart and BS artists do not like him. Cnbc does not like him as he will not be forced to give BS predictions with simple answers that their producers want.

Academia is brutal😀

Is that why Deutsche Bank is in trouble?

He only gets his bonus if the entire fund makes a profit, and for the firm to make a profit more than half of the coin-toss-traders must win their toss. The probability that more than m/2 out of m traders win a coin toss is equal to the probability that less than m/2 do, by symmetry. So the probability the firm makes a profit is 0.5 ぐらい, effectively halving the expected profit of all his strategies were he to otherwise act alone. Cooked

his first example of probability is flawed

Tier 1 US Bank quant here: Got to say he is one of the most arrogant guy in the industry. There are many top quants in the industry and he clearly thinks everyone is stupid...

Who said economics says 100 bottles sell for $100.get your facts right

9 likes

My gosh, he is so changed from a decade + ago. He was so socially inept is a way, hard to describe, but he seems so much more "personal". I bet he has had some relationships (close) and it has rounded him out. Money may have burnt him. He sees a weird dimension of the world that most will never have an interest in even listening to, But he can speak to a lay person, or is it mean lame. So we are all being outmodeled by geeks, we are now living in an algorithm. We are all handcuffed by a non existing illustration of what - ifs. We never had control in the past, nor will we own any part of the future. We are screwed here and now. Here is a guy who is leaps and bounds above are intellectual cube. And he still likes wearing a corduroy sport coat, at least he has not added the elbow dressings. What should we bet he spent >$1000 for it for the image and awareness, or he cheaped out and spent the $800 elsewhere. Is it game theory. Or common sense based on his net worth. We need more data. He has these classes down pat, notice he is not falling asleep and pacing back and forth like a fox in amongst hen cages. He is excited and his audience is being played, like a maestro at the symphony, he awaits the accolades. He would be an interesting person to pose good questions to. Not useless trivial ones.

13:13 lol why would the probabilities multiply : 50% x 75%? wouldnt the alternative then be 50% x 50% which is worse still? the job of the academic economist isn't to understand the intricacies of your workplace, it's to incrementally better understand the MARKET, to show you that diversifying should even be a goal or not. Believe it or not, they don't then have time to come do your job for you and navigate your workplace politics.

But does the model work? If you simplify equations and the plane doesn't fall, what's the problem? People ain't stupid...if they put billions into simple models...chances are because it works. They are not trying to be santa claus throwing money about, I guess...🙂

lot of salty ex-academics giving talks on youtube. just do your thing, why so much hate towards academics? they do their thing, no one is twisting your arm to use their "useless" idealized models. if you misinterpret an idealized model, thats on you.

he clearly doesn't know the difference between Trillion and Quadrillion ...